No abstract

The full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. This article investigates collective bargaining trends in the German private sector since 2000. Using data from the IAB Establishment Panel and the German Establishment History Panel, it provides both cross sectional and longitudinal evidence on these developments. It confirms that the hemorrhaging of sectoral bargaining, first observed in the 1980s and 1990s, is ongoing. Furthermore, works councils are also in decline, so that the dual system also displays erosion. For their part, any increases in collective bargaining at firm-level have been minimal in recent years, while the behavior of newly-founded and closing establishments does not seem to lie at the root of a burgeoning collective bargaining free sector. Although there are few obvious signs of an organic reversal of the process, some revitalization of the bargaining system from above is implied by the labor policies of the new coalition government.

Industrial relations are in flux in many nations, perhaps most notably in Germany and Britain. That said, comparatively little is known in any detail of the changing pattern of the institutions of collective bargaining and worker representation in Germany and still less in both countries about firm transitions between these institutions over time. The present paper maps changes in the importance of the key institutions, 1998-2004, and explores the correlates of two-way transitions, using successive waves of the German IAB Establishment Panel and both cross-sectional and panel components of the British Workplace Employment Relations Survey. We identify the workplace correlates of the demise of collective bargaining in Britain and the erosion of sectoral bargaining in Germany, and identify the respective roles of behavioral and compositional change.JEL Classifications: J50, J53